FAIR ISAAC CORP. $92.85 (New York symbol FICO; TSINetwork Rating: Average) (415-472-2211; www.fairisaac.com; Shares outstanding: 31.1 million; Market cap: $2.8 billion; Dividend yield: 0.1%) makes FICO Scores, the program that dominates the market for software that businesses use to evaluate customer creditworthiness. Fair Isaac also profits by selling programs that help credit card issuers control fraud and analyze cardholders’ spending patterns.
In its fiscal 2015 third quarter, which ended September 30, 2015, Fair Isaac’s revenue rose 5.0%, to $232.8 million from $221.6 million a year earlier.
Sales at the company’s applications division (64% of the total) fell 1.6% on weaker demand for marketing and fraud-detection software. However, sales of creditscoring programs (25%) jumped 24.5%, while sales of analytics software (11%) gained 8.7%.
The company earned $50.9 million, up 15.2% from $44.2 million. Earnings per share rose 18.0%, to $1.57 from $1.33, on fewer shares outstanding.
Fair Isaac spends around 12% of its revenue on research, which lets it produce innovative products that keep it ahead of the competition.
Excluding unusual items, the company expects to earn $4.43 to $4.55 a share for all of fiscal 2016, and the stock trades at 20.7 times the midpoint of that range. That’s a somewhat high multiple, as the banking industry supplies 75% of Fair Isaac’s revenue, and the likelihood of rising interest rates over the next year could slow mortgage demand and hurt sales of its credit-scoring software.
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Privacy Policy and Terms of Use
The Successful Investor Inc. and its affiliate Successful Investor Wealth Management (referred to hereafter as TSI Network) know that you care how information about you is used and shared, and we appreciate your trust that we will do so carefully and sensibly. This notice describes our privacy policy. By visiting websites owned by or associated with TSI Network, you are accepting the practices described in this Privacy Policy.
This privacy policy is applicable to all TSI Network Visitors, Clients, Employees, Suppliers, Web sites, Management, and all other interested parties. Any links to or from our site are not covered by this policy. We encourage you to read the privacy policies of every site that you visit.
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We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.
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What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
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Does TSI Network Use the Information It Receives?
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Changes to this Policy
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TSI Network may revise this Policy from time to time.
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